The Referral Agreement Between Brokers serves as a crucial document in the U.S. real estate industry, facilitating professional collaboration between licensed brokers. This agreement is essential when brokers wish to establish formal referral relationships, particularly when operating across different geographic areas or specializations. The document ensures compliance with federal regulations like RESPA and state-specific real estate laws while protecting both parties' interests through clear delineation of referral processes, commission structures, and mutual obligations. It's particularly valuable for brokers looking to expand their network and provide comprehensive services to clients beyond their immediate market area.
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1. Parties: Identifies the referring and receiving brokers, including license numbers and contact information
2. Background: Establishes the context of the agreement and the parties' intentions to refer business
3. Definitions: Defines key terms used throughout the agreement including 'Referral', 'Commission', 'Qualified Lead'
4. Referral Terms: Details the process of making and accepting referrals
5. Compensation Structure: Specifies referral fees and payment terms
6. Term and Termination: Duration of agreement and termination conditions
7. Compliance: Regulatory compliance requirements and representations
1. Territory: Defines geographic scope of referrals when parties wish to limit referrals to specific geographic areas
2. Exclusivity: Terms of exclusive referral relationship when parties agree to work exclusively with each other
3. Marketing: Guidelines for marketing the referral relationship when parties plan joint marketing efforts
1. Commission Schedule: Detailed breakdown of referral fees and commission splits
2. Referral Process: Step-by-step procedure for making and processing referrals
3. Compliance Checklist: List of regulatory requirements and compliance procedures
4. License Information: Copies of current broker licenses and certifications
Relevant legal definitions
Clauses
Relevant Industries
Relevant Teams
Relevant Roles
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